Lack of cash flow can be the Entrepreneur’s nightmare and it has been known to sink many SMEs. The reasons are numerous – poor handling of available cash, not enough cash to make it through leaner times etc. but the primary reason is that we just have to wait too long to get paid after the job has been done and invoiced.
ENTER INVOICE FACTORING
One solution for this, a highly effective one in fact, and one that millions of SMEs and even some larger businesses globally turn to is Invoice Factoring. So, for the uninitiated, what is Invoice Factoring?
Also sometimes referred to as Debt factoring, Invoice finance or Asset-based lending, Invoice Factoring is as one definition describes it ‘is a way for businesses to fund cash flow by selling their invoices to a third party (a factor, or factoring company) at a discount. Invoice factoring can be provided by independent finance providers, or by banks.’
One needs to remember that Invoice Factoring is not a loan. You sell your invoices at a discount to a factoring company in exchange for a lump sum of cash. The factoring company then owns the invoices and gets paid when it collects from your customers, typically in 30 to 90 days.
WHAT ARE THE BENEFITS?
We can only speak for our own business because every factoring company would have its own, but at Finrock Capital the benefits include…
- You convert your business into a cash on delivery business – and you will not have to wait for up to 90 days for payment from your customers. Finrock will pay you up to 75% of the invoice, into your bank account, once you have delivered the goods and services to your customers. The 25% balance of the invoice will be paid to you, once we receive payment from your customer, less our discount fee.
- More cash flow – which means increased profits and sales, room for expansion and better settlement discounts from suppliers
- Access working capital – The amount of working capital and cash flow you receive into your bank account will grow as you grow your business. The more goods and services you deliver, the more cash flow will be available to you.
- Professional debtor administration – We provide, free of charge, the credit assessment and limits to guide and support you to grow a profitable and sustainable business.
- Free up your team from collecting debt – so that they can focus on growing your business. The credit administration of your outstanding invoices will be provided by Finrock, free of charge (get more details on this here). Legal collection services are provided as required, through a network of approved associates. This includes issuing letters of demand, summonses and the legal recovery process.
A rock in the Invoice Factoring industry
Built on solid foundations with an excellent track record as testified to by our ever-growing loyal customer base, Finrock Capital offer excellent Invoice Factoring solutions to the Wholesalers, Importers, Transport and Logistics and Manufacturing industries.
Visit our website to view our simple seven-step process and begin enjoying all the benefits of Invoice Factoring for your business, or talk to us about your unique financial situation us see in what ways we can help. What is Invoice Factoring? – simply something Finrock Capital has perfected!
